The Nature of the Damage Caused by Deprivation of Economic Benefits in Terms of Loss of Profit or Possibility of Obtaining it and the Conditions for Establishing a Causal Relationship in Economic Damages that Occur in a Chain Reaction; Analysis of the Judgment Rendered by Ardebil Court of First Instance and Provincial Appellate Court

Keshavarz Safi Yi, Smaeil

doi:10.22034/analysis.2026.2079769.1160

The Nature of the Damage Caused by Deprivation of Economic Benefits in Terms of Loss of Profit or Possibility of Obtaining it and the Conditions for Establishing a Causal Relationship in Economic Damages that Occur in a Chain Reaction; Analysis of the Judgment Rendered by Ardebil Court of First Instance and Provincial Appellate Court

Document Type : Original Article

Author

smaeil keshavarz safi yi

Assistant Professor, Department of Law, Faculty of Humanities, Islamic Azad University of Qazvin

10.22034/analysis.2026.2079769.1160

Abstract

The nature of the damage resulting from the cessation of mining operations, given that the owners of the exploitation license have the right to use the relevant mine for a limited and specific period, is considered an example of damage resulting from the loss of potential benefits, the net value of which should be evaluated as accounting profit after deducting the deductible costs.Regarding the damage resulting from the failure to use and depreciation of equipment and machinery to start and complete the sand and gravel production workshop due to the prevention of the completion of the workshop, given that the aforementioned equipment and machinery have certain, established (existing) benefits and possess the necessary operating conditions, preventing their use is considered to be a loss of potential profits from the equipment and machinery, and can be assessed within within the framework of accounting profit after deducting the costs that can be counted if they are used.Unless their use in other similar activities is reasonable, low-risk, logical (plannable), and conventional, which is not possible in this case due to the high cost and risk of moving machinery and equipment and the unpredictability of the duration of prevention.In contrast, damage resulting from the deprivation of completing the processing cycle related to sand and gravel is an example of loss of profit, economic profit, and the subsequent chain of damage from the loss of the use of machinery, which is not considered recoverable due to the possibility of its occurrence in future, its unforeseeability, and the inability to attribute the loss in a conventional manner to the act of the tortfeasor.

Keywords

loss of profit

possible to obtain

accounting profit

damage that occurs in a chain reaction

economic profit

opportunity cost

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